Deputy Speaker, hon Minister, hon Deputy Minister, hon members, distinguished guests, we who are gathered here are beneficiaries of the freedom to which Mama Winkie Direko dedicated her life. We are the relay team to which she has handed the torch that she carried for so long. The race will continue until we have achieved a better life for all our people.
The legacy of apartheid policies in South Africa has created large disparities between racial groups in terms of socioeconomic status, occupation, education, housing and health. These policies have created a fragmented health system, which has resulted in inequitable access to health care. The inequities in health are reflected in the health status of the most vulnerable groups.
Hon Speaker, we are committed to a service delivery culture that puts every elected official and public servant to work for our people and ensure accountability to them and the democratically elected government. We remain in touch with our people and listen to their needs as reflected in the Bill of Rights in the Constitution.
The current global economic context is characterised by high levels of uncertainty. Against this background, South Africa's development depends largely on government improving its level and quality of service delivery in support of the inclusive and equitable economic policy framework in the New Growth Path.
Let me emphasise the fact that, despite limited fiscal resources, the ANC- led government provides a safety net for nearly one-third of the population through the social grants programme. Contributory social security reforms and the rolling out of the National Health Insurance programme are measures to boost job creation, living conditions, the working environment and a broader social wage for our people.
An important aspect of a successful developmental state is investment in public sector workers and, in turn, our people expect public sector workers to execute the task which they have been entrusted with. This means that adequate numbers of personnel should be placed in the correct positions and where it is not the case, government should have the capacity to implement corrective measures, either through training or redeployment, if warranted.
The ANC-led government has taken the decision that we should do more to grow the country's economy in order to eradicate the problems of unemployment, poverty and inequality in South Africa. The commitment of this administration to social security is a living reality of this. Social security is an essential constitutional right if we are to build a society which is cohesive, more equal and values human dignity.
South Africa is faced with the triple challenge of unemployment, poverty and inequality. Africans, women and the youth continue to suffer most because of these challenges. The ANC-led government remains committed to fighting the triple scourge of unemployment, poverty and inequality.
Hezwo ndi zwithu zwine ra ?o sedzana nazwo thwii, nga hoyu ?waha na mi?waha i?aho. [These are the things we will be focusing on directly this year and in the years to come.]
Decent work provides dignity; it provides security for a family and allows people to contribute towards the social protection system. The state prepares an enabling environment for economic growth and the development of state, private and social capital sectors by providing enablers and removing obstacles. The ANC-led government has alleviated poverty on a short-term basis through the Expanded Public Works Programme, which provides short-term jobs and skills. It has also supported about 15 million South Africans, of whom 10 million are children, through social grants.
We have an effective social security system. Many households would have no food if it were not for the social grants. We are improving the economic situation and continue to work towards building bridges between the transition from social security to meaningful and decent work.
The social assistance programme is the ANC-led government's most direct means of combating poverty. By the end of 2011, nearly 15,3 million people were eligible for social grants, from 2,5 million in 1998. Although grants are targeted to assist potentially vulnerable members of society - the young, old and disabled - more than half of households benefit from social assistance.
The social grant system has been expanded by extending the age limit for child grants to the child's 18th birthday. The elderly, like other vulnerable groups, have been neglected by an uncaring apartheid governing system. Elderly Africans, particularly those in rural areas, continue to suffer even more. A higher old-age grant for those over 75 was introduced in 2011, and the means test threshold for the old-age grant and disability grant was increased significantly in the same year. In 2012-13, R104,9 billion is allocated to social assistance, rising to R122 billion in 2014-15. The number of grant recipients is set to rise from 15,6 million in 2011-12 to 16,8 million in 2014-15.
Achieving an appropriate level of funding for the National Health Insurance is necessary to ensure that the tax structure remains supportive of economic growth, job creation and savings. The National Health Insurance will be phased in over a 14-year period, beginning in 2012-13.
The new system will provide equitable health coverage for and accessibility to all South Africans. Over time, the new system will require funding over and above current budget allocations to public health. It is expected that an additional revenue source amounting to R6 billion will be needed in the year 2014-15, which is not currently budgeted for in the Medium-Term Expenditure Framework.
Employment is the most effective route out of poverty and boosting long- term job creation remains an overriding objective of economic policy. Over the short-term period, the ANC-led government has provided temporary work through the Expanded Public Works Programme and related initiatives.
Public employment services help job seekers to find jobs and training. Further education and skills development programmes are intended to bolster higher employment and productivity. Job creation has to be complemented by a well-designed social insurance framework, both as protection against unemployment and income vulnerability, as part of the broader social wage.
Reforming social security and health care and the way these are financed presents an opportunity to improve the scope and fairness of social expenditure. As in the envisaged design of social security arrangements, the principle of social solidarity lies at the heart of health reform and the national health insurance will extend to everyone.
I would like to draw the attention of this House to the relationship between social security and the broader global crises, specifically the European sovereign debt crisis. In times of economic crisis, priorities normally shift and countries move to defend their own economies from the fall-out.
The economic and financial crisis has placed social insurance systems under pressure. The crisis also challenges the financing of social security systems. However, financial pressure is stronger on systems that rely heavily on contributions and not taxes, thus generating new debates on how best to finance social security systems.
The Freedom Charter commits us to a preventive health scheme run by the state, free medical care and hospitalisation provided for all, with special care for mothers and young children. There have been achievements in improving access to health care. However, much more needs to be done in terms of the quality of care, making services available to all South Africans and ensuring better health care outcomes. The ANC-led government has seriously embarked on the reduction of inequalities in our health system, improving the quality of care in public facilities, boosting the capacity of our human resources and stepping up the fight against HIV and Aids and other diseases. Health reforms involve the mobilisation of available resources in both the private and public health sectors to ensure improved health outcomes for all South Africans.
In this, the centenary year of the ANC, the President of the Republic, President Jacob Zuma, is honouring the legacy of the liberation movement by ensuring that we are on the path towards economic and social justice, where all will be free from the indignity of poverty. Our goal is very clear: we want to have a country where millions more South Africans have decent work, greater employment opportunities, modern infrastructure and a vibrant economy in which the quality of life is high. Together we have the responsibility to work hard to make this a reality. Government alone cannot solve the challenges faced by the country, but working together, solutions are possible. We know well that if we work alone, none of us can achieve any success. We must, therefore, act together as a united people.
Yo fhedza khomba ya Madzinga. ?ala dza vhathu. Aa! [U fhululedza.] [I have finished. Thank you. Salute! [Applause.]]